Pan African hikes production guidance, makes progress at MTR

The AIM-traded firm said gold production for the six months through December was expected to range between 94,000 and 98,000 ounces, reflecting a 2% to 6% increase compared to the first half of the 2023 financial year, which saw 92,307 ounces produced.

It said its operations were performing as anticipated or even better.

At Barberton Mines underground, the firm was expecting 37,000 to 38,000 ounces, up from 32,022 ounces a year earlier.

The board said continuous operations at Barberton had resulted in higher mined tonnages and grades compared to the prior period.

Evander Mines underground would meanwhile see 20,000 to 21,000 ounces, up from 19,173 ounces.

Improved gold production was attributed to higher-grade ore from the 24 level at Evander’s underground operations and enhanced conveyor belt availability.

Equipping the ventilation shaft for the hoisting of waste and production ore from the 24 to 26 levels was meanwhile on track for commissioning in the first quarter of 2024.

Elikhulu tailings retreatment was set to see 27,000 to 28,000 ounces, up from 25,830 ounces, while Evander surface sources were expected to fall to 2,000 ounces from 5,270 ounces, and Barberton tailings retreatment was expected to slide to between 8,000 and 9,000 ounces from 10,012 ounces.

Pan African revised its full-year 2024 production guidance upwards to 180,000 to 190,000 ounces, from the previous range of 178,000 to 190,000, compared to 175,209 ounces produced in 2023.

Looking at the construction progress of the MTR Plant at Mogale, Pan African said it remained on track, with commissioning expected to occur in the latter half of the 2024 calendar year.

The project’s construction timeline proceeded as planned, as capital expenditure aligned with budgetary expectations.

Pan African said foundations for seven out of nine CIL tanks were now in place, with the construction of the tower crane having started.

Environmental rehabilitation efforts had also commenced, including the cleanup of historical spillages, pipeline maintenance, wetlands remediation, and removing invasive vegetation.

“The expected production performance for the half year to December 2023 positions the group to deliver excellent results for the full financial year,” said chief executive officer Cobus Loots.

“The continued momentum with the construction of the MTR plant at the group’s Mintails Project is again testament to our track record of bringing world-class tailings retreatment projects to account.

“MTR is expected to commence production at the end of 2024, and will add some 50,000 ounces per year to group production, increasing our annual output by some 25%.”

At 1244 GMT, shares in Pan African Resources were up 4.26% at 16.54p.

Reporting by Josh White for Sharecast.com.